GlobalFoundries-IBM Deal Finalized

One day after announcing it had received clearance from the federal government, GlobalFoundries says it has completed the acquisition of IBM's microelectronics manufacturing business, including the IBM facility in Essex Junction, which employs approximately 4,000.

"The deal strengthens the company's workforce, adding decades of experience and expertise," GlobalFoundries said in a statement issued Wednesday. "The addition of more than 16,000 patents and applications makes GlobalFoundries the holder of one of the largest semiconductor patent portfolios in the world."

Government clearance was granted by the Committee on Foreign Investment in the United States. GlobalFoundries lone shareholder is a company owned by the government of Abu Dhabi.

Under the agreement with IBM, GlobalFoundries acquires plants in Vermont and East Fishkill, NY. IBM will pay GlobalFoundries $1.5 billion.

Speaking last year, a GlobalFoundries senior vice president said there would be no significant changes in Essex Junction in the next four or five years, after a series of layoffs by IBM in recent years.

This story was updated at 7:10am, July 1 to include the announcement the acquisition has been finalized.

"It's been a long summer," says Frank Cioffi of the Greater Burlington Industrial Corporation, referring the long-awaited announcement that IBM is offloading its microchip manufacturing division, which includes the IBM plant in Essex Junction, to GlobalFoundries. We look at why IBM is paying Global Foundries $1.5 billion over three years to take over that business, what it means for employees, and the impact on the state's economy.